How to Make Money Trading Commodities . . .

“Plan Your Trade, Trade Your Plan”

“Plan your Trade, Trade Your Plan!” This
was the advice I heard from a professional trader
when I first got started in this business. At first,
it didn’t make much sense to me, but after a
couple of trades it began to sink in.

Most of the successful traders I have met all seem
to have this basic philosophy. They have learned that
they must plan every trade before they ever think
of entering the market. And once they are in the market,
they must stick to that plan. “My best trades
are the ones that I have planned well in advance,
and I don’t deviate from that plan once I’m
in.” Proclaimed one floor trader I spoke with.

The most successful people in life have a solid plan
for how to achieve their goals. This also holds true
for most successful traders.

Successful traders set their projections before they
ever get into a trade, and when the market gets to
their projection, they have no hesitation on getting
out of the market. Now if the market should happen
to go against their plan, they are also prepared to
take their loss.

One of the most important aspects of being a successful
trader is how you take losses. Every trader is going
to have losses, that’s a fact of trading. It
is accepting that fact and dealing with it that will
separate successful from unsuccessful traders.

I have seen traders that will literally hold on to
a losing position, until every penny they own is gone
and they are forced to get out. This is no way to
trade. Every trader should trade by the philosophy
“the more experience you obtain trading, the
better the trader you will become.” There will
always be another trade tomorrow, and that trade may
be the one that makes your entire year. Always keep
faith in your plan and try not to deviate too much
from that plan.